Original article by David Rogers
The Australian – Page: 28 : 19-Mar-19
George Tharenou of UBS says the Reserve Bank of Australia should immediately reduce the cash rate by 50 basis points to one per cent, given the state of the economy and the housing market. Tharenou adds that the central bank should also signal that it is prepared to cut official interest rates even further in order to avoid a market shock later on. He has also not ruled out measures such as quantitative easing. Tharenou expects rate cuts in July and August, although he says weak labour market data could force its hand earlier.
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY